Which of the Following Is NOT a Reason for Firms

question 6

Multiple Choice

Which of the following is NOT a reason for firms in an
Industrial nation to undertake vertical FDI in a low­income
Nation?

• A)access to raw materials
• B)lower wages
• C)avoidance of export taxes
• D)access to raw materials, lower wages, avoidance of export taxes

---

Definitions:

Deposit Insurance

Deposit Insurance is a protection scheme for bank depositors that guarantees the safety of deposits in member banks, up to a certain limit, in the event of a bank failure.

Moral Hazard

A situation in which one party is more likely to take risks because they do not have to bear the full consequences of their actions, often seen in insurance and finance.

Risk Aversion

A preference for lower risk investments, often reflecting an investor's reluctance to accept a high likelihood of losses.

Federal Tax Bracket

Federal tax brackets are ranges of income to which different tax rates apply, forming part of the U.S. progressive tax system.